Sir Mervyn King is warning now that the eurozone crisis is the single biggest threat to Britain's recovery from recession.
Indeed, a disorderly break-up of the eurozone would be so catastrophic that the Bank of England continues to exclude it from its forecasts. But even without it, the Bank now believes that the UK will only grow by around 0.8% this year (down from 1.2% previously).
By his own estimates the recovery really isn't even absent a total crisis.
Still he's right about this:
Governor King said that the most depressing thing about the crisis is that politicians keep treating the crisis as a liquidity problem, when the real crisis is about solvency.
The question all along has been who gets to suck on it? The rich assholes who did it or the rest of us. Mostly the answer has been the rest of us.